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British Journal of Management, Vol. 24, S31–S47 (2013)


DOI: 10.1111/1467-8551.12010

It takes Two to Tango? Understanding the


Co-production of Public Services by
Integrating the Services Management and
Public Administration Perspectives
Stephen P. Osborne and Kirsty Strokosch
University of Edinburgh Business School, 29 Buccleuch Place, Edinburgh EH8 9JS, Scotland, UK
Corresponding author email: Stephen.Osborne@ed.ac.uk

We propose an important theoretical development for our understanding of the


co-production of public services. It combines the insights from both public administration
and services management theory to produce a novel typology of co-production. This
clarifies its role at the operational and strategic levels, as well as its potential for
transformational change in public services. Understanding co-production in this way
provides a basis through which to explore a whole range of dimensions of co-production
that were previously undifferentiated.

Introduction of social care in the UK through self-directed


support and the ‘personalization’ of social care
This paper is an important contribution to devel- delivery (e.g. Scottish Government, 2010).
oping our theoretical appreciation of the Outwith the UK, co-production has also been
co-production of public services. Through theo- articulated as a key response to the need for public
retical combination it enriches our conceptualiza- services reform by, amongst others, the OECD
tion of co-production in a way that pushes (OECD Directorate for Public Governance and
forward our understanding of this significant Territorial Development, 2011), the World Bank
strand of public policy and public services deliv- in relation to the Developing World (Joshi and
ery. The theoretical, policy and practice implica- Moore, 2002, 2004) and the Australian Govern-
tions of this are suggested below and then ment (Parliament of Australia, 2011).
explored further in the conclusions to the paper. The present paper is the theoretical outcome of
Co-production is an important strand of the a larger project that has been examining such
current public services reform agenda across the co-production in the context of the planning and
world. In the UK (both as an entity and within its delivery of social care services to asylum seekers in
constitutive devolved nations) it has been argued Scotland. This larger study explores three empiri-
to have the potential to improve the efficiency and cal questions: the extent to which co-production
effectiveness of public services by both the UK is dependent upon citizenship; if co-production
Government Cabinet Office (Horne and Shirley, can act as a conduit to build social inclusiveness
2009) and by influential public policy ‘think tanks’ and citizenship; and if individual service user
such as Demos (Parker and Heapey, 2006) and co-production is a prerequisite for co-production
NESTA (Boyle and Harris, 2009). It is also at the and partnership working, or not, by public
core of other significant public policy agendas service organizations (and especially by third
that are pushing forward public services reform, sector organizations). In particular the study has
such as the commitment to transform the delivery examined the association between the service

© 2013 The Author(s)


British Journal of Management © 2013 British Academy of Management. Published by John Wiley & Sons Ltd,
9600 Garsington Road, Oxford OX4 2DQ, UK and 350 Main Street, Malden, MA, 02148, USA.
S32 S. P. Osborne and K. Strokosch

relationship and the public policy agenda for co- its ‘new public management’ (NPM) articula-
production and social inclusion. tion) in its overt concentration upon the mana-
The present paper proposes a new framework gerial lessons from the manufacturing sector,
for understanding the co-production of public with its focus both upon discrete transactions
services, as part of the growing theoretical devel- and singular outputs. He argues rather that
opment of the field of public management (Ferlie, public management has considerable gains to
Hartley and Martin, 2003). It draws together two make by a consideration instead of the services
streams of literature on co-production – from the management literature (as discussed below) with
services management (Gronroos, 2007; Johnston its focus upon ongoing relationships and service
and Clark, 2008; Normann, 1991; Vargo, Maglio outcomes. This paper takes this argument
and Archpru Akaka, 2008; Venetis and Ghauri, forward in a significant strand of public policy
2004) and the public administration (Alford, and argues that our understanding of co-
1998; Bovaird, 2007; Brudney and England, 1983; production is enhanced by this integration of
Parks et al., 1981; Pestoff, 2006; Pestoff, Osborne insights from the services management and
and Brandsen, 2006; Whitaker, 1980) perspec- public administration literatures.
tives. These have developed in parallel since the It is important at the outset to clarify some of
1970s with no attempts until recently to explore the limitations of the paper. First, it must be
what insights might develop from their integra- emphasized that this is not a paper about the
tion. This is a potential avenue for the develop- co-production and the public policy formulation
ment of public management theory that has been process. This has been explored in more detail
raised by several authors in a recent important elsewhere (Scott and Baehler, 2011). Rather it is a
collection of papers on co-production (Bovaird paper about the implementation of public policy
and Loeffler (2012) and Porter (2012) in Pestoff, and the delivery of public services – what Scott
Brandsen and Verschuere, 2012). However, this and Baehler call the ‘responsive’ and ‘operational’
present paper is the first to explore this avenue levels of public policy. Here we denote these two
in depth and to derive substantial conceptual domains ‘strategic’ and ‘operational’ respectively.
advancement from it. As such it provides sig- Second, the empirical context of this paper is
nificant conceptual development of public man- the experience of public services delivery in the
agement theory that furthers our understanding UK – and specifically the delivery of public serv-
of the role, opportunities and limitations of ices to asylum seekers in Scotland. Its import
co-production in public services delivery. though, we would argue, is not bounded by this
In brief, this approach differentiates three geographical or service locus but has implications
modes of co-production, at the operational, stra- for public services delivery across the globe.
tegic and service levels. These are denoted the Third, it is important to offer some core concep-
‘consumer’, ‘participative’ and ‘enhanced’ modes tual definitions at the outset, to clarify the reach
of co-production. For researchers, the conceptual of the paper. By ‘public services’ we are referring
work presented here provides powerful concep- to services that are created through the public
tual tools to assist with the description, analysis policy process and regulated by (central or local)
and evaluation of different forms of co- government but which can be provided by a range
production in public services and with predictions of ‘public service organizations’ (PSOs) in the
about their impact. For policy-makers and prac- public, third and private sectors. The latter bodies
titioners, this approach also offers a way to under- are those organizations engaged in delivering
stand the distinctive challenges that different public services to local people and communities.
forms of co-production present and their implica- Drawing upon Bovaird (2007, p. 847), co-
tions for public policy design and implementation production is defined broadly as ‘regular, long-
and for public services management. Finally, for term relationships between professionalized
service users, the approach highlights the skills service providers (in any sector) and service users
required by them to engage in the differing modes or other members of the community, where all
co-production identified here. parties make substantial resource contributions’.
Osborne (2010; Osborne, Radnor and Nasi, Beneath this over-arching definition, though,
2013) has identified a crucial flaw in contempo- lie differing discourses of co-production in the
rary public management theory (particularly in public administration and services literature. The

© 2013 The Author(s)


British Journal of Management © 2013 British Academy of Management.
It takes Two to Tango? S33

understanding and negotiation of these differing 1998, 2002; Bovaird, 2007; Brandsen and Pestoff,
discourses is at the heart of the unique contribu- 2006; Brudney and England, 1983; Evers, 2006;
tion of this paper. Frederickson, 1996; Levine and Fisher, 1984;
Finally it is also important to clarify that the Parks et al., 1981; Pestoff, 2006; Pestoff, Brandsen
paper does not attempt to situate co-production and Verschuere, 2012; Rosentraub and Warren,
as a normative alternative to prevailing funding 1987; Sharp, 1980; Whitaker, 1980). Inevitably
or structural models used to deliver public serv- the idea evolved as public administration theory
ices, such as contractual or partnership models. itself evolved – from the focus on policy imple-
As we shall argue below, co-production in service mentation and the administration of services
delivery can and/or will exist irrespective of what (‘traditional’ public administration) through the
structural or funding models are utilized. Once managerial and consumerist concerns of the NPM
the true nature of co-production is understood, era of the 1980s and 1990s and into the more
therefore, it is subsequently a matter of political recent concerns of ‘digital governance’ and the
and strategic decision-making as to its relation- ‘new public governance’ (Osborne, 2010).
ship to these structural models and mechanisms. Each of these approaches to the delivery of
The structure of the paper is as follows. We public services had its own preoccupation. ‘Tra-
commence by exploring the place of co- ditional’ public administration emphasized the
production within the public administration and separation of politics and administration, with the
services management literatures. We then con- latter focusing upon the relationship between citi-
sider how the insights from these literatures may zens and public services and their mediation
be integrated to present a more nuanced under- through professionals (Lynn, 2001). Often in this
standing of co-production. We conclude by approach public administrators were seen as
drawing out the conceptual and policy and prac- ‘nefarious’ (Lipsky, 1968), thwarting the will of
tice implications of this approach. citizens for greater influence upon the design and
delivery of public services (Vroom and Yetton,
1973). Co-production (Ostrom, 1972) was thus
Co-production: the public articulated as a way through which public services
administration perspective could be delivered with ‘the maximum feasible
participation of residents of the areas and
As identified above, we are not concerned with the members of the groups served’ (Judd, 1979, p.
public administration literature that explores 303). In the USA this linked into the development
co-production in ‘upstream’ public policy formu- of the New Public Administration movement
lation, with its focus on the work of government (LaPorte, 1971), whilst in the UK it was most
ministers and civil servants and their interactions associated with the idea of ‘public service orienta-
with citizens (see Scott and Baehler (2011) for a tion’ (Stewart and Clarke, 1987).
detailed discussion of this). Rather we are con- The NPM, by contrast, emphasized the
cerned with the implementation of public policy resource constraints of public services delivery
and most specifically with the design, reform and and the need for a managerial approach to their
delivery of public services (as a means through delivery, recasting citizens as the ‘consumers’
which to enact public policies agreed ‘upstream’ rather than ‘clients’ of public services (Hood,
at the purely political level). There is a strong and 1991). Although initially concerned primarily
highly influential implementation literature on with adopting a managerial approach both to the
co-production that originates from the seminal allocation of scarce public resources and to public
work of Ostrom (1972) in the USA. She con- services delivery the NPM subsequently came to
tended that PSOs depended as much upon the be associated (in Anglo-American countries at
community for policy implementation and service least) with the concern to use competitive markets
delivery as the community depended upon them. to reform the delivery of public services and it
This was the genesis of the concept of co- re-cast the role of the citizen in public services
production in public administration. delivery as that of the self-interested consumer
The public administration co-production litera- (Alford and Hughes, 2008; Roberts, 2004). In
ture subsequently developed predominantly in the this context, co-production became associated
USA, Europe and Australia (inter alia, Alford, primarily, and controversially, with the concept of

© 2013 The Author(s)


British Journal of Management © 2013 British Academy of Management.
S34 S. P. Osborne and K. Strokosch

‘consumerism’ and with contrasting views upon exclusively charged with responsibility for design-
its effectiveness (Barnes, 1995; Potter, 1994; ing and providing services to citizens, who in turn
Powell et al., 2010). only demand, consume and evaluate them’
Latterly the frameworks of digital governance (Pestoff, 2006, p. 506; our emphasis). This public
and the new public governance have reformulated administration literature on co-production subse-
public services delivery in an ‘open systems’ quently discusses the ways in which service user
context (Scott, 1992). On the one hand, it is no participation can be ‘added into’ the process of
longer a case of exploring the top-down relation- service planning and production to improve the
ship between public policy, PSOs and the recipi- quality of these services. This latter day public
ents of public services. Emerging new technology administration discourse (itself increasingly refor-
has offered service users potential routes to wrest mulated as ‘public management’) still conceives of
(some) control over public services from the public services as ‘goods’ to be designed, planned
policy, administrative and managerial structures and produced primarily by service professionals –
(Bekkers et al., 2011; Dunleavy et al., 2006). On but where service users can be invited into the
the other hand, the fragmentation of public serv- process by these professionals even if the public
ices delivery in the post-modern state has put an goods are still consumed (relatively) passively by
accent upon inter-, rather than intra-, organiza- service users. Co-production thus does not chal-
tional relationships for public services delivery lenge the basic premises of public administration,
(Haveri, 2006). The new public governance because it can only occur at the behest of, and
replaces public service organizations with public controlled by, service professionals (Brandsen
service delivery systems, where the interaction of a and Pestoff, 2006).
multiplicity of actors is required to achieve soci- Co-production in this discourse is significantly
etal goals and to deliver public services – with the dissimilar conceptually (and in practice) from its
emphasis being upon partnership and collabora- ‘sister’ (or cousin?) within the services manage-
tion1 as being, variously, an effective means with ment literature, below. The emphasis in public
which to lever new resources into the delivery of administration is on joint working between two
public services, a holistic way in which to address parties that typically operate from different places
complex social needs and an instrument for in the production process. One party is the pro-
social inclusion (Osborne, 2010). In context, fessional service delivery staff within government
co-production has again been re-formulated, this departments and/or PSOs. Traditionally, of
time as a core element of the production of pre- course, the design and planning and the delivery
cisely such holistic and ‘joined up’ public services. of public services would have been vertically inte-
This evolution of public administration has had grated within a government department, although
import for the expectations, and conceptualiza- sometimes with third sector involvement (Parks
tion, of service users in the planning and delivery et al., 1981). Increasingly though the impact of
of public services. It has not been a ‘steady state’ both the NPM and the new public governance has
concept but has evolved, portraying service users been to separate design and planning (usually
as co-producers in different guises – as citizens/ undertaken by central or local government) from
clients, consumers, customers – and latterly delivery by PSOs within the public, private or
simply as ‘co-producers’. Thus, from being a con- third sectors. Thus the role of the individual
tested and fluid element of public administration, service user is ‘simply’ to subsequently consume
co-production has now moved to occupy a central the public service, unless invited into the service
position in it (Alford, 2009). It is the latter planning process. In this model, co-production is
conception of co-production within public admin- a design element to be ‘added on’ to service deliv-
istration that is of concern here. ery, and which may enhance its design and plan-
Within the current discourse of public adminis- ning by accessing the knowledge and experiences
tration, therefore, co-production challenges its of service users or improve the effective delivery of
traditional orthodoxy where ‘public officials are the service (Pestoff, 2006). The central point in
this model is that co-production is something
1
Salamon (2002) has estimated that approximately 95% external to the delivery of a public service that
of federal public services in the US are delivered through needs to be designed into these services in order to
partnership arrangements. achieve specified desired outcomes.

© 2013 The Author(s)


British Journal of Management © 2013 British Academy of Management.
It takes Two to Tango? S35

The most developed recent approaches to If it has its limitations, nonetheless what this
co-production in public administration theory are public administration discourse on co-production
twofold. Bovaird (2007) posits a range of relation- does articulate most strongly is a space for the role
ships between service users and PSOs, depending of service users in the planning and design of
upon the respective role of each in the planning public services. Both Alford (2009) and Pestoff,
and delivery of public services. This is a significant Brandsen and Verschuere (2012) are important in
conceptual development for co-production within the most recent discussions of this, which have
public administration for it clearly explicates the moved the debate considerably from initial con-
range of roles and experiences service users might cerns of writers such as Ostrom (1972) and Sharp
inhabit – though only at the behest of service (1980). Yet even so, this most recent work
professionals. Alford (2002, 2009) has also use- still maintains a view of co-production as some-
fully explored the contingencies of co-production thing to be consciously built into public services.
in public services, in terms of the inducements and This basic assumption is challenged, however,
sanctions used by public service professionals to when one explores the conceptualization of
enable the process. For all this though, both co-production within the service management
maintain the enduring perspective of public literature.
administration upon co-production as an
optional element of the service delivery process,
arguing that ‘service users and their communities Co-production: the service
can – and often should – be part of service planning management perspective
and delivery’ (Bovaird, 2007, p. 846; our empha-
sis). From this perspective, co-production is seen As discussed above, the re-casting of public
as a normative, voluntary, good that should add administration as ‘public management’ in the
value to the public service production process, but 1980s and beyond (as part of the NPM move-
that is not intrinsic to it. As will be seen below, ment) was predicated upon the assumption that
this is a qualitatively different discourse to that public services delivery was not so much a process
within the services management field. of the administration of the rule of law but rather
Such normative conceptualizations of one of the allocation of scarce economic resources
co-production have often been associated with to meet societal needs. What is curious is that, in
efforts to improve democracy by placing service addressing these managerial rather than adminis-
users and communities at the heart of service trative concerns, politicians, practitioners and
delivery decision-making processes, as discussed researchers alike turned to managerial theory
above (see also Alford, 2002; Bovaird and derived primarily from the manufacturing sector
Loeffler, 2009). However, negative aspects of and ignored the dedicated theory and literature on
co-production have also been discussed in the services management – despite the fact that this
public administration literature. Public service may well have unique insights to offer to the
providers, for example, can consider co- understanding of public services management
production as time consuming and resource (Osborne, Radnor and Nasi, 2013). It is true that
intensive, diverting attention from the ‘real’ task the ‘consumerism’ movement in public services
of effective service delivery, whilst concerns have delivery of the 1990s drew heavily upon some ele-
also been raised that including more participants ments of services management theory. However,
in the process of planning and delivering services as others have argued, this approach was a partial
will not necessarily lead to a consensus and will one that has sought to extract ‘the consumer’
make it more difficult for appointed professionals from the overall service delivery process and that
to provide leadership (Levine and Fisher, 1984). failed to understand the totality and logic of this
Finally, service users need an appetite to process – and its implications for public services
co-produce which, from the public administration delivery (Jung, 2010; Powell et al., 2010).
perspective, requires that they dedicate personal We argue here that the services management
time and energy to service production. A debate literature can add valuable insights into our
exists as to whether they have either the time understanding of co-production, because of the
or inclination for this (Osborne, Beattie and central role that the latter concept plays within
Williamson, 2002). the services literature. Consequently, it arguably

© 2013 The Author(s)


British Journal of Management © 2013 British Academy of Management.
S36 S. P. Osborne and K. Strokosch

provides a more accurate starting point for theo- quality and performance of the service (Van Looy,
rizing about public services production – and in Gemmel and Van Dierdonck, 2003). The process
combination with the public administration lit- experience of a business consultancy by its client,
erature it can stretch our understanding of for example, is at least as important in its ‘perform-
co-production. Crucially, the services manage- ance’ as is the quality of the advice offered – indeed
ment literature is not concerned with how to some have even modelled this as a dramaturgical
‘enable’ or ‘build in’ co-production to the service process (Clark and Salaman, 1998).
delivery process – what might be termed the Finally, and most significant in the context of
‘design’ imperative (Sangiorgi, 2012). Its basic this paper, services are unavoidably co-produced
premise is that co-production is an essential and by the service staff and the service user. The expe-
inalienable core component of service delivery: rience of a service process is shaped primarily by
you cannot have (public) service delivery without the expectations of the user, their active role in the
co-production. It is the essential and intrinsic service delivery process and their subsequent
process of interaction between any service experience of the process. Service organizations
organization and the service user at the point of can only ‘promise’ a certain process or experience
production of a service – what Normann (1991) – the actuality is dependent upon the Normann’s
has termed ‘the moment of truth’ in services (1991) ‘moment of truth’, where service user
provision. expectations of a service collide with their experi-
Briefly,2 services management theory stems ence of it (Magnusson, 2003; Venetis and Ghauri,
from tripartite notions of inseparability, intangi- 2004). A classic example of this would be the
bility and co-production (Gronroos, 2007). The experience of residential care by the interaction of
production and consumption of services are staff and service users in a residential home. The
inseparable because they are produced and con- expectations and personal characteristics and
sumed simultaneously – rather than with produc- actions of the residents of a residential home
tion and consumption being temporally and produce the experience of that home as much as
spatially separated as in the case of manufactured do the actions of its staff.
goods (Johnston and Clark, 2008). Thus, whilst In reality, of course, such elements are more of
manufactured goods are produced in one place a continuum than a steady state. Services such
(e.g. a factory), sold somewhere else (a shop) and as residential care and education are clearly
then consumed at a third site (perhaps in some- instances where the co-production is high, owing
one’s home), the production and business logic to the fact that consumption and production take
for services is entirely different. Production and place both at the same point in time and in the
consumption occur at the same time and often in same place, with direct face-to-face contact
the same place, with service being their defining between the service user and the service provider.
feature. It is not the provision of a standardized By contrast, they are rather lower for electronic
and pre-packaged product but rather a value financial services, because production and con-
based interaction (Vargo, Maglio and Archpru sumption occur through the medium of an
Akaka, 2008). A theatrical experience, a consul- electronic interface that does not have the inter-
tation with a solicitor and a hotel stay are exam- personal immediacy of face-to-face contact – in
ples of such simultaneous inseparability of this case, the co-production of a financial service
production and consumption. is essentially passive (inputting financial data on
Services are also intangible. They are not con- yourself or choosing from a list of pre-set
crete goods that can be physically moved and/or options), mediated through a virtual interface.
consumed at a time of the consumer’s choosing Indeed key elements of mainstream services
(such as a washing machine). Rather they are theory are increasingly being challenged by the
intangible processes, with the issue of the subjec- virtual rather than real-time relationships of
tive experience of the service delivery process by e-services. Yet even such services do still exhibit
the consumer being a key determinant of the co-production and there is a growing literature
upon co-production within virtual service envi-
2
A more detailed exposition of services theory and its ronments (e.g. Gummerus, 2010).
application to public administration and public manage- Unlike much current public administration and
ment is found in Osborne, Radnor and Nasi (2013). management literature, therefore, the services

© 2013 The Author(s)


British Journal of Management © 2013 British Academy of Management.
It takes Two to Tango? S37

Table 1. A continuum of modes of co-production

Consumer Participative Enhanced


co-production co-production co-production

Consumer co-production results from the Participative co-production results from the Enhanced co-production results from
inseparability of production and intention to improve the quality of existing combining the previous operational and
consumption during the service encounter public services through participative strategic modes of co-production in order to
and focuses upon the engagement of the mechanisms at the strategic planning and challenge the existing paradigm of service
consumers at the operational stage of the design stage of the service production delivery. The aim is user-led innovation of
service production process in order to process. These mechanisms include user new forms of public service
balance their expectations and experience of consultation and participative planning
the service. The aim is user empowerment instruments. The aim is user participation

management literature emphasizes the interaction three modes of co-production. The first two take
between the service producer and the service user an operational and strategic focus respectively to
and the interdependence between these two at the clarify their differing contributions to our under-
operational level. The users’ contribution as a standing of co-production in public services. The
co-producer during service production is not only third mode integrates insights from both to create
unavoidable but is also crucial to the performance a new ‘enhanced’ mode of co-production. This
of a service and the impact of the service upon approach acknowledges the balance between
them (Lengnick-Hall, Claycomb and Inks, 2000). co-production in the strategic planning and
It is important to note that this approach to operational management of public services noted
co-production does not necessarily require user by Alford (2009) whilst also accepting, from the
involvement in the service planning process. services literature, the inalienable role of
However, this can occur and is often termed ‘co- co-production in the delivery of public services at
creation’ and is linked to the service innovation the operational level. We denote these three
process. This is discussed further below. modes as consumer co-production (based in serv-
If services theory has insights to offer to our ices management), participative co-production
understanding of co-production, it also has limi- (based in public administration and public man-
tations. Services theory has no real understanding agement) and enhanced co-production (that com-
of the political and policy context of public serv- bines elements of the two previous modes to
ices, nor of service production in the context of produce a third mode). These modes are now dis-
unwilling or coerced service users (as in the case of cussed below, with the weight of the discussion
the criminal justice system, for example) or where focused upon enhanced co-production as the
the desired outcomes of a service are multiple genuinely original conceptual contribution of our
and/or contested – as can be the case in a range of framework and which hence requires greater
child-care services (Osborne, 2010). However, a explication.
novel conceptual combination of the public
administration and the services perspectives has
the potential to further our understanding of Consumer co-production
the nature, process and limitations of the co- As has been argued previously, in services theory,
production of public services. This is the intent of the role of the consumer in a service is multiple: to
the next part of the paper. contribute to the production process, to simulta-
neously consume that service and to evaluate the
quality of the service. The act of service consump-
Integrating the public administration tion is the cornerstone of co-production, as it is
and services management perspectives this action that results in the consumers’ contri-
bution to production at the operational level –
Table 1 draws together the discourses on their expectations and experiences are central to
co-production from the services management and effective service delivery and to the outcomes of
the public administration perspectives to produce the service. Service quality and performance exist

© 2013 The Author(s)


British Journal of Management © 2013 British Academy of Management.
S38 S. P. Osborne and K. Strokosch

where these expectations and experiences collide operational service delivery but rather at the stra-
during the process of service co-production. tegic level of service planning. Such co-production
This first mode therefore focuses upon the does not necessarily challenge the nature of opera-
operational level of public services delivery and tional service delivery, but rather affects the
conceptualizes co-production as an inalienable design and planning of existing services at the
component of public services production. This strategic level. The question is thus not ‘how can a
acknowledges that it is involuntary and unavoid- public service ensure that users’ expectations of
able on the part of both the service user and that service are met by their experience of it, and
the PSO. From this perspective, therefore, co- how will this influence service performance?’
production is not an issue of choice and design Rather it is ‘how can the current experience of a
but rather of the management, at the operational public service by its users be utilized to design and
level, of the relationships between the PSO and plan this service for the future?’ We should
the individual service user. Co-production is thus emphasize that we do not argue that the public
not an add-on to the delivery of a public service administration discourse of co-production has
but is rather a core element of the effective man- been solely concerned with this strategic level over
agement of public services on a day-to-day, the decades. This is not the case. But rather that
operational, basis – and a key determinant of both it is the strategic element of this discourse that
their quality and performance. It must be empha- has most to offer to a holistic model of the
sized that this goes beyond ‘simple’ consumerism, co-production of public services.
as discussed above, and towards a more sophisti- Arnstein’s (1969) (see also Havassy and Yanay,
cated understanding of a public service as a 1990) ‘ladder’ of citizen participation is one
service delivery system (Vargo, Maglio and approach that might be used to explore the actu-
Archpru Akaka, 2008). In this mode, therefore, ality of this mode of participative co-production –
co-production becomes a profound restatement although it is not without its critics (Tritter and
of the public service management task as an inter- McCallum, 2006). It recognizes that participation
active and systemic one where experience and out- in planning can in reality range from cosmetic and
comes are negotiated between the service user and limited forms of co-production (such as public
the service delivery professional rather than one consultations where there is no commitment to
dominated by the latter professionals alone. This act) to forms where service users can have a direct
implies the empowerment of the service user effect upon the direction of service development
within the service production process, as a key (such as through being an active member of a
arbiter of service quality and performance. service partnership). This point has been pursued
Such user empowerment has of course been an further by Bovaird (2007) in his work.
aspiration of public services reform for several A key distinction to be made here is between user
decades (Osborne, 1994; Skelcher, 1993). Con- empowerment and user participation as the
sumer co-production reformulates this ambition in desired intentions of co-production. Both have of
a manner both that understands it as a natural part course been longtime goals of public services,
of the service production process and that offers though with only limited achievement. User
concrete approaches to its achievement. This, we empowerment is concerned with the ability of indi-
believe, is a qualitative step forward in making this vidual service users to control their experience of a
aspiration for individual user empowerment a public service and contribute to their own desired
reality in public services by drawing on the lessons outcomes. As such it is best approached through
from services management. What consumer the mode of consumer co-production. User par-
co-production does not do, however, is to consider ticipation by contrast is concerned with the role of
the needs of service users as a collectivity, to affect the service user in participating in the public
public services at the strategic planning level or to service planning process in order that the public
consider the needs of future service users. service system can address their needs more effec-
tively in the future (Simmons and Birchall, 2005).
It is also seen as a route to other desirable social
Participative co-production
outcomes, such as social inclusion (Beresford,
In the second mode, co-production is conceptual- 2001). This is the realm of participative co-
ized not in the individual consumption logic of production. Inevitably these two concepts do

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British Journal of Management © 2013 British Academy of Management.
It takes Two to Tango? S39

overlap. User participation in public service plan- planning level to produce the potential for
ning can be enabled by user empowerment, whilst transformational effects upon the public services
user empowerment at the operational level can delivery system as a whole – user-led innovation of
flow from planning initiatives initiated by user new forms of public service delivery. This is not
participation at the strategic level (Osborne, about user empowerment within current service
Beattie and Williamson, 2002). What our app- paradigms or their participation in the planning
roach here achieves is to uncover and distinguish of future services within this paradigm. Rather it
the differing logics of these two processes. Only by is about challenging this service paradigm and,
such conceptual clarity can we fully understand potentially, transforming it entirely.
both their integrity and their possible integration. It could be argued that such a conceptualization
The latter point is returned in the next section. is simply a modality of the previous two modes
It is also an issue of debate within this mode produced by arithmetic addition. We would
as to whether an individual user has sufficient argue, however, that it is not simply such an addi-
power within service planning structures to tion but a geometric progression. Enhanced
move beyond ‘tokenism’ to genuine engagement in co-production does not occur solely either at the
debate about the future direction of these services. operational locus of consumer co-production or at
Other research (e.g. Osborne, Beattie and the strategic locus of participative co-production.
Williamson, 2002, 2006) has suggested that indi- Both these exist within and impact upon the pre-
vidual users may well require support from medi- vailing paradigm of public services delivery.
ating structures within civil society in order to Enhanced co-production uses this experience to
achieve this impact – such as user or community challenge this prevailing paradigm and (poten-
groups or third sector bodies committed to sup- tially) transform the public services delivery para-
porting the engagement (e.g. Councils for Volun- digm through transformational change – or what
tary Service in England or Third Sector Interfaces has been termed elsewhere ‘total innovation’
in Scotland). This is an issue that requires further (Osborne, Chew and McLaughlin, 2008). This is
exploration. an important conceptual development that identi-
fies for the first time the link between the
co-production of public services and the potential
Enhanced co-production3
for their transformational innovation – an oft-
The previous two modes are, in a sense, an asserted aim but one that to date has eluded clari-
integrated reformulation of the potential con- fication of the mechanisms involved (Osborne and
tributions of the existing public administration Brown, 2011). With the enhanced co-production
and services management perspectives, in order mode, user-led innovation explicitly formulates
to offer a more holistic understanding of co- the role of service users as a driving force for
production, albeit within a relational framework. transformational innovation by combining their
Both occur within the existing framework of operational level experience of the actuality of
public service delivery with an intention to public services delivery with their engagement at
improve the efficiency and/or effectiveness of the strategic level – but in this case not simply to
these current arrangements – at either the indi- plan the development of existing services but
vidual or service level. Enhanced co-production rather to challenge their overall design. Neither of
is, though, a genuine conceptual advance. In this the previous modes of co-production above
third mode, consumer based mechanisms in implies such transformational innovation. They
operational delivery of public services are com- are essentially ways to provide existing service
bined with participative ones at the strategic models more efficiently and/or effectively.
Enhanced co-production goes beyond this by inte-
3
It must be emphasized that the term ‘enhanced’ is not grating co-production at the operational and stra-
used in any normative sense to suggest that this is a tegic levels to transform service delivery and
qualitatively ‘better’ mode of co-production than the co-create new processes and forms of public serv-
previous two modes. This mode is ‘enhanced’ only to the ices. This is the import of this unique formation of
extent that draws on the previous two modes in a com-
binatory manner to create a new conceptual category of co-production. In the private sector such transfor-
co-production. Its opportunities, challenges and limita- mational innovation through co-production
tions are discussed further below. has often been termed co-creation (e.g. Payne,

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British Journal of Management © 2013 British Academy of Management.
S40 S. P. Osborne and K. Strokosch

Storbacka and Frow, 2008; Prahalad and Enhanced co-production offers a link between
Ramaswamy, 2004) and has been articulated as co-production and the much sought after goal
the core process through which to achieve success- of transformative innovation in public services
ful sustainable performance in the marketplace through co-creation (Mulgan, 2006). In the serv-
(Vargo, Maglio and Archpru Akaka, 2008). ices management field, Von Hippel (e.g. 1994,
Recent public policy discussion has begun to 2005) has made a veritable career out of prescrib-
assert such co-creation as a key objective in public ing and evaluating co-production as a core source
services delivery (for instance Bason, 2010; of such co-creation and transformative user-led
Evamy, 2009). It is a concept, however, that is innovation (see also Barras, 1986; Sundbo and
significantly under-theorized in the public admin- Gallouj, 2000; Van der Aa and Elfring, 2002).
istration and public management literature and Such user-led innovation is dependent upon two
lacking any genuine understanding of what this things. First it requires the bringing together
might entail or how it might be achieved. Mulgan, of the operational and strategic levels of
though himself a proponent of such an approach, co-production to unlock Von Hippel’s ‘sticky’, or
has argued that the ‘absence of sustained and sys- tacit, knowledge that service users possess in
tematic analysis [on user-led innovation and order to transform the service (Von Hippel, 1994).
co-creation] is holding back the practice of social Here, the service organization is proactively
innovation’ (Mulgan, 2006, p. 159). Similarly seeking to uncover, understand and satisfy ‘latent
Osborne and Brown (2011) have called for greater (future) needs’, rather than simply reacting to
conceptual clarity on the nature and processes of (existing) expressed needs (Ordanini and Pasini,
such user-led innovation and co-creation if we are 2008; Vargo and Lusch, 2008). Second it requires
to drive forward the process of innovation in service users working together as collectivities to
public services. The approach articulated here, we support each other in the process – so that they
would argue, is a major contribution to producing are not simply atomized within prevailing service
this much needed conceptual clarity and system- structures (Alam, 2006). As Von Hippel (2005)
atic analysis which offers real substance to the has made clear, it is not simply a case of em-
desired outcome for public services reform and powering service users and expecting them to im-
renewal. mediately begin transforming (public) services.
Thus within the services management litera- Enhanced co-production requires a genuine part-
ture, customization (Kristensson, Matthing nership between public service professionals and
and Johansson, 2008), which equates to service service users that is predicated upon the use of
improvement through the ‘consumer co- knowledge to transform service delivery. A key
production’ mode identified above, might challenge therefore is what mechanisms best
improve the ‘operational fit’ of a service to the unlock this potential and how to ensure that
individual needs of a service user and meet these service professionals and service users alike have
individual needs more effectively but it does not the requisite skills to power these mechanisms.
transform the service overall – for all existing and This challenge is returned to further in the con-
future users. The public administration discourse, clusions to this paper.
in contrast, has a long history of proposing ‘co- None of this implies that innovations arising
production’ as the solution to the need for ‘social from such enhanced co-production are always
innovation’ in public services delivery as part of social or economic goods, of course. There are
the reform process of these services (Dibben and numerous examples of failed or inappropriate
Bartlett, 2001; Hartley, 2005; Joyce, 1998). This innovations in both public and private goods
invariably implies the involvement of service users (Brown and Osborne, 2013) and engaging users in
in the service planning process through mecha- transformative innovation will not, by itself, guar-
nisms ranging from consultation to direct partici- antee the achievement of positive innovation. The
pation. Such strategic involvement equates to the task of evaluating the risks and import of trans-
‘participative co-production’ mode identified formative innovations is an entirely different one
above. It does address the needs of the collectivity from enabling such transformative innovation to
rather than solely the individual but through occur (Brown and Osborne, 2013). Enhanced
improving existing service deliveries rather than co-production is thus necessary to ensure user-led
challenging them. transformative innovation can occur, but it is not

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It takes Two to Tango? S41

sufficient to ensure that all such innovations the professionals alone. In such a digital era, a
should occur. The latter process is a normative more nuanced understanding of the nature of
one that requires political debate about what is co-production and its interaction with these
acceptable rather possible in a society.4 emerging technologies will be essential to both
Finally, the role of information and com- understanding and governing the process of public
munications technology (ICT) and digital technol- services delivery and renewal.
ogy is of particular consequence in relation We therefore argue that enhanced co-
to enhanced co-production (Enkel, Gassmann production is an important conceptual develop-
and Chesbrough, 2009; Moller, Rajala and ment that can enable us to address Mulgan’s call
Weserlund, 2008). At a theoretical level this has led (above) for ‘sustained and systematic analysis’ in
to the influential concept of ‘open innovation’ understanding the contribution of public service
(Chesbrough, 2003). In a public service context, users to innovation in public services. The frame-
their potential to support the development of new work presented here, we argue, makes extant
forms of co-production (as discussed below in rela- the dimensions of this mode of co-production
tion to the custodial treatment of offenders) and to and its relationship to the two existing modes
enable service users to take an active role in of consumer co-production and participative
enhanced co-production has been recognized by a co-production.
number of writers (e.g. Kinder, 2000; Pascu and We reiterate that the conceptual clarity about
van Lieshout, 2009). Dunleavy et al. (2006) (see co-production offered here is no guarantee, by
also Bovaird and Loeffler, 2009) have argued sub- itself, that the potential benefits of co-production
sequently that what they term digital era govern- will always be achieved. Such normative intent is
ance (DEG) offers the basis for ‘self-sustaining not implicit in this paper. However, we argue that
change’ in public services. Dunleavy and his col- this clarity will both offer more nuanced analysis
leagues are at pains to point out that, by itself, and evaluation of the impacts of co-production
DEG is no guarantor of co-production, of any upon public service delivery and effectiveness and
form, and that professionals might yet utilize the offer guidance to public service planners, manag-
technology to buttress their own roles at the cost of ers and users about the potential and limitations
genuine co-production. Moreover if the impact of of co-production in public services delivery – and
DEG is actually to lead to greater fragmentation of thence allow them to consider how best to opti-
the public services delivery system, by encouraging mize its positive impact upon these services.
a multitude of voices, then the cost of this may be
greatly increased inefficiencies in the delivery of The limitations of enhanced co-production.
public services (Peters and Pierre, 2000). Nonethe- Unsurprisingly, given its potential as a powerful
less, DEG does offer the potential of enhanced engine of public services reform and innovation,
co-production and co-creation by enabling more there are also barriers to the potential of such
equal access to essential information about social enhanced co-production and user-led innovation.
and economic needs and the performance of public First, PSOs are typically highly professionalized
services. Bekkers et al. (2011), for example, have and may be resistant to accepting the actual
demonstrated how ICT and digital technology premise of enhanced co-production or its chal-
have enabled individual service users and commu- lenges to their own professionalism (Bovaird and
nities to take a more equal role in the policy plan- Loeffler, 2003; Osborne, 1994). Second, simply
ning and implementation process, and sometimes establishing mechanisms through which to
seizing the agenda, precisely by allowing them involve service users in service planning and pro-
access to information previously in the domain of duction does not guarantee the enhanced mode of
co-production. A PSO can take an active, passive
or even tokenistic approach to responding to
4
As Osborne and Brown (2011) have noted, not all inno- these mechanisms (Sinclair, 2004). Users them-
vations in public services have been considered as selves can also often be conservative in their
socially acceptable – a classic example being the case in approach, preferring to retain existing modes of
the UK of ‘pin-down’ in child-care services in the 1990s.
Effective mechanisms to promote innovation in public service delivery rather than risk the loss of a
services must hence be balanced by political debate service through innovation. Both these issues can
about what is socially acceptable. limit the innovative potential of PSOs.

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S42 S. P. Osborne and K. Strokosch

Finally there are also limits to the positive The prison service is a classic example here. In this
potential of innovation through co-production. context the professionals of the prison service
As discussed above, providing individuals with have a custodial function that it is hard to
too much power in the production of public serv- co-produce. Even here, though, it has been argued
ices has been argued to lead to inefficiencies in that the electronic tagging of convicted criminals
public spending (Peters and Pierre, 2000), whilst within the community is a form of co-produced
Alam (2006) argues that over-customization in custody that negotiates the coercive element
service innovation at the individual level leads to (Corcoran, 2011). Margetts (2009) goes further
service fragmentation and inefficiency. with this argument, too, suggesting that ICT and
web-enabled technologies may be a new incentive
and technology to embrace co-production – and
Discussion again citing the argument that community-based
custodial options may be one area ripe for such
To date the three modes of individual digital innovation.
co-production detailed here have not been made Third, co-production is particularly fraught
explicit or clearly differentiated in the discussion where public services, as is often the case, can
about the planning and delivery of public services. have multiple and perhaps conflictual users. In the
Our contention is that the appreciation of above case of custodial prison services, for
co-production and its potential benefits in this example, it is a moot point who the actual service
context are improved significantly by their user is – the convicted criminals themselves, or the
differentiation. We also argue that combining court, victims of crime, or society more broadly.
the insights for public administration and ser- This dilemma is highlighted particularly by
vices management has produced powerful new Bovaird (2005). Such contestation is not a reason
concepts to help us analyse and evaluate this to limit the role of co-production in public serv-
phenomenon. ices, but rather it is a reason perhaps to acknowl-
Inevitably, any such conceptual approach is edge its greater complexity in public services than
subject to its own limitations. We have already in the business sector. Tools to negotiate such
discussed the specific barriers to user-led innova- conflictual situations in public services do exist,
tion above. In addition we argue that there are such as stakeholder approaches (e.g. Bryson,
four broader limitations to co-production that 2004).
must be taken into account in considering the Finally, substantive empowerment, participa-
implementation issues of these three modes of tion and user-led innovation through
co-production. First, just as service users bring co-production are all reliant on the presence of
important expertise to co-production so too do trust in the service relationship – because the
service professionals. Co-production is not about process of co-production can be risky, uncertain,
the replacement of the role of professionals by time-consuming and costly for PSOs (Yang,
service users (as in some of the more naïve ver- 2006). Service professionals and planners must
sions of public services consumerism discussed by trust that they will receive some return from
Powell et al. (2010) and Jung (2010)). Rather it is co-production, whilst service users must trust that
about bringing these different forms of expertise their contributions will be recognized, valued and
together. To take a simple example, one would acted upon.
not want to replace the role of the surgeon by the Developing such trust has of course been a sub-
patient in the co-production of oncology services stantive challenge for PSOs for many decades
– the professional expertise of the former group is (Van de Walle and Bouckaert, 2003). Tools to
vital here. However, the research has also indi- assist in the process of this development do exist
cated the significance to clinical outcomes of the in the services management literature, however,
co-production of the overall treatment plan and such as relationship marketing (Sheth and
its implementation between health professionals Parvatiyar, 2000), and some have already
and patients (Katz et al., 2005; see also explored their application to public services (e.g.
Guadognoli and Ward, 1998). McLaughlin, Osborne and Chew, 2009). Without
Second there are inevitably cases where the user such application, the risks of co-production may
of a public service is an unwilling or coerced user. undermine the trust essential to its enactment –

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British Journal of Management © 2013 British Academy of Management.
It takes Two to Tango? S43

and ultimately counter its benefits in the imple- tions). Finally, we have taken the analysis a step
mentation process. The implications of this need further by integrating the insights from these two
further exploration. perspectives in order to advance the concept of
enhanced co-production. This new conceptual
category draws on both the above perspectives
Conclusions and provides insights into the processes and con-
tingencies of user-led innovation as a process of
We have argued for a significant contribution to public services innovation and reform.
the theoretical debate around the nature of
co-production in public services, by integrating
Implications for public policy and for public
insights from two distinct theoretical perspectives
services management
(public administration and services management)
that have previously existed in isolation. This has As it stands this framework is, we believe, an
import for public management theory, for public important contribution to theory. As with all
policy and for public services management. good public administration and public manage-
ment theory, though, it is one with the potential
to make a significant contribution to practice
Implications for public management theory
(Andrews and Boyne, 2010; Head, 2010). We
We have enhanced the clarity of our appreciation draw out four implications here. First, it is no
of co-production and allowed the evolution of a longer permissible for public policy-makers or for
substantial conceptual development in our under- public service professionals simply to argue for
standing of co-production – an analytical frame- ‘co-production’ as some holy grail for all the ills of
work of three modes of co-production. This current public services delivery or as a novel way
framework allows for much greater clarity in dis- to provide public services at less cost in a time of
cussing the co-production of public services and austerity. We have explored three different modes
has enabled its disaggregation from one larger, of co-production, together with their limitations.
somewhat vague, concept into separate conceptu- Greater clarity over what public policy or a spe-
ally rigorous elements. This has clarified both the cific public service is trying to achieve through
distinction and inter-relationship between indi- co-production can only enhance the effectiveness
vidual and collective co-production and the extent of reforms designed with this in mind.
to which co-production can either improve the Second, it is not realistic to expect that simply
existing mechanisms and processes of public serv- tasking service users with enhanced co-
ices delivery or challenge them (though user-led, production will automatically lead to trans-
transformative, innovation). It has also allowed formative innovation. As the literature on such
us to discuss some of the limitations and barriers innovation in the private sector has made clear,
to the achievement of co-production in practice, service users require support to move from the
as well as suggesting some approaches to the reso- articulation of individual needs to collective and
lution of these issues. service level needs (e.g. Alam, 2006; Von Hippel,
The services management perspective improves 2005). This includes both designing forums predi-
our understanding of the nature of the cated upon a lead role for users (rather than
co-production of public services by individual simply upon consulting them) and supporting the
service users, by providing a more accurate development of their skills subsequently to engage
description of the service production process at an successfully in these forums. These issues have
operational level. It helps us to understand the been addressed in different contexts for public
inherent role of co-production in the delivery of services (e.g. Crosby, 2010; Crosby and Bryson,
any service – public or private – and its links to 2005; Huxham, 2003). These insights now need
user empowerment. The public administration application to the co-production of public services
literature, by contrast, provides insight into in its different modes.
co-production at the strategic, service planning, Third, this debate on co-production opens up a
level. It helps us understand how this can be wider debate for public policy-makers and service
linked to individual and community participation delivery professionals. As has been argued by
in the planning of public services (and its limita- one of these authors elsewhere (Osborne, 2010;

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British Journal of Management © 2013 British Academy of Management.
S44 S. P. Osborne and K. Strokosch

Osborne, Radnor and Nasi, 2013), public services areas of public service delivery in order to
delivery over the past two decades has been domi- clarify the extent to which it is a general model
nated by approaches (often under the rubric of the or to which there are industry-specific issues to
NPM) that have consistently treated public serv- be taken into account;
ices as if they were manufactured goods rather • in particular, exploring the boundaries of the
than services. This has led to a focus on design service user and citizen roles, the extent to
and performance evaluation rather than upon the which they are mutually dependent, and their
significance of knowledge transformation and of implications for the nature of co-production;5
the process of service delivery. It has also encour- • evaluating a range of public policy and public
aged public service reform strategies that have service delivery options for facilitating the dif-
been introspective and sought to increase internal ferent modes of co-production identified here,
efficiency whilst ignoring the core issue of external to identify and consider their contingencies;
effectiveness (Radnor and Osborne, 2013). This • exploring the implications of unwilling, coerced
has been despite a significant services manage- and multiple service users for this framework;
ment and service dominant literature that • similarly, considering the range of relationships
explores these issues in a private sector context that a user might have with their service over
and which has been discussed extensively above time (some public services may be used continu-
(Osborne, Radnor and Nasi, 2013). The present ously whilst others may require periodic or spo-
paper has demonstrated the utility of this services radic usage) and the implications of this for the
literature for public policy making and public nature of co-production;
services. It is long overdue for this wider contri- • examining the contribution that ICT and digital
bution to be recognized and acted upon in a technology can make to the practice of
public service context. co-production;
Finally, none of the above should be taken to • scrutinizing specific cases where co-production
negate the need for political debate about what has failed or proved difficult to facilitate in
forms of co-production and social innovation are order to clarify its limitations; and
socially acceptable. This is the arena in which to • assessing the key skills that policy-makers,
decide, for example, whether the tagging of service professionals and service users require to
offenders to co-produce custodial sentences in the optimize the potential for co-production, as
community is socially acceptable, just as it was to well as the range of mechanisms for enabling the
decide that ‘pin down’ in the 1990s was a socially development of these skills.
unacceptable form of innovation in child-care
Only once such an agenda has been pursued will
services.
the full utility, and limitations, of this new frame-
work be clearly elucidated.
Co-production: a research agenda
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Stephen P. Osborne is Chair of International Public Management and Director of the Centre for
Public Services Research at the University of Edinburgh Business School. He is also Associate Dean
for Quality in the College of Humanities and Social Sciences at the University of Edinburgh. He edits
the journal Public Management Review.

Kirsty Strokosch is an independent consultant and also a Research Associate of the Centre for Public
Services Research at the University of Edinburgh Business School.

© 2013 The Author(s)


British Journal of Management © 2013 British Academy of Management.

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